Apple and Samsung Garner 50% of Global Smartphone Market and 90% of
Its Profits, Says ABI Research

June 15, 2012 10:17 AM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Although smartphone shipments grew 41% year-over-year to 144.6 million
as of the quarter ending March 2012, many smartphone OEMs are not
enjoying the benefits of a rapidly expanding market. Samsung and Apple
captured 55% of global smartphone shipments in 1Q’2012 and over 90% of
the market’s profits. The question remains: can anyone break away to
become a strong third in this market?

Of the top ten smartphone OEMs, only Samsung and Sony experienced
sequential growth in shipments over 4Q’2011. Nokia witnessed a 40%
sequential decline in shipments and may soon be passed by ailing RIM in
shipments despite the BlackBerry maker’s 20% sequential decline in
shipments. “At this point in the year, Nokia will have to grow its
Windows Phone business 5000% in 2012 just to offset its declines in
Symbian shipments,” says Michael Morgan, senior analyst, devices,
applications & content.

Table: Select Smartphone Vendor Shipments, 1Q’2012

(Millions of units)

Apple

35

Huawei

6.8

Nokia

11.9

RIM

11.1

Samsung

43

Sony

7

ZTE

4.9

Source: ABI Research

As the smartphone markets of North America and Western Europe pass 50%
penetration, smartphone OEMs should seek growth in key markets, such as
China, which continues to show strong shipment growth of over 80%.

Despite the shipment growth opportunities that China offers, smartphone
OEMs will have to contend with local vendors ZTE and Huawei whose cost
structures are tailored to deliver smartphones and homologated content
ecosystems at the lower price points needed to drive growth across the
country. “As Nokia’s market share in China plummets, the competition to
fill this power vacuum has the potential to make or break smartphone
OEMs currently struggling with profitability and differentiation,” adds
Jeff Orr, practice director, devices, applications & content.

ABI Research provides in-depth analysis and quantitative forecasting of
trends in global connectivity and other emerging technologies. From
offices in North America, Europe and Asia, ABI Research’s worldwide team
of experts advises thousands of decision makers through 40+ research and
advisory services. Est. 1990. For more information visit www.abiresearch.com,
or call +1.516.624.2500.